Ivanhoe Electric entered into four option agreements with Bronco Creek Exploration, a subsidiary of Elemental Royalty, to acquire the Dragon’s Tail, Copper King, Sleeping Beauty‑Jasper Canyon, and Lomitas Negras copper projects in Arizona’s Laramide porphyry belt.
The agreements require an upfront execution payment of $240,000 and allow Ivanhoe to make up to $2.325 million in option payments over an eight‑year term. Ivanhoe can spend up to $10.8 million in cumulative exploration expenditures and will receive a 2.5 % net smelter return royalty, with the option to buy back up to 0.5 % of the royalty for up to $4 million per project. Annual pre‑production and milestone payments will be made as the projects advance.
The low‑cost option structure preserves capital while giving Ivanhoe the flexibility to evaluate resource potential before committing significant funds. By adding four high‑grade porphyry prospects to its portfolio, the company strengthens its domestic copper exploration footprint and supports its strategy to secure U.S. supply chains for critical metals.
Ivanhoe’s recent earnings show a narrowing net loss, with Q3 2025 net loss of $17.52 million versus $43.24 million in Q3 2024, and a nine‑month net loss of $71.89 million versus $145.53 million in the same period of 2024. The improved financial position provides a stronger foundation for pursuing new exploration opportunities such as the Arizona projects.
Executive Chairman Robert Friedland emphasized that the acquisitions align with the company’s focus on critical metals for electrification and U.S. supply chain resilience. Analysts continue to view Ivanhoe’s portfolio expansion favorably, citing the company’s advanced Typhoon™ geophysical surveying system and its track record of turning low‑cost options into production assets.
While the announcement did not trigger an immediate market reaction, the broader analyst consensus remains positive, with several firms maintaining 'Buy' or 'Strong Buy' ratings and noting the potential upside from the expanded pipeline.
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